What's happening
This bill exempts low-emission and energy efficient vehicles from New York retail sales and use taxes until December 31, 2022.
Why it matters
Encourages cleaner vehicles. By exempting low-emission and energy efficient vehicles from sales and use taxes, the bill provides a financial incentive for consumers to choose environmentally friendly cars, potentially accelerating the adoption of cleaner transportation.
Defines eligibility clearly. The bill outlines specific criteria for what qualifies as a "low-emission and energy efficient vehicle"—either EPA-certified vehicles or those scoring at least 9 on both air pollution and greenhouse gas metrics—giving consumers and dealers clear guidance on which vehicles are covered.
Offsets tax revenue loss. To balance the reduction in tax revenue from these exemptions, funds will be replaced by proceeds from the auction of emissions allowances, ensuring the state budget is not unduly impacted and linking the policy to broader environmental funding mechanisms.
Time-limited impact. The exemption is temporary, expiring at the end of 2022, which allows lawmakers to assess its effectiveness and fiscal impact before deciding whether to extend or modify the program.
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Who cares
Headline styles
No Sales Tax on Green Cars
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to budget and revenue
- Referred to budget and revenue
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
No Sales Tax on Green Cars
In Assembly Committee · Ways And Means · Sponsor J. Gary Pretlow
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3602
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. PARKER, ADDABBO, BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to exempting low-emission and energy efficient vehicles from retail sales and compensating use taxes; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45 to read as follows:
(45) Low-emission and energy efficient vehicles. For purposes of this paragraph, a "low-emission and energy efficient vehicle" shall mean a vehicle certified by the administrator of the United States environmental protection agency pursuant to 23 U.S.C. § 166(f)(3). If the administrator of the United States environmental protection agency has not so certified any vehicle as a low-emission and energy efficient vehicle, then, until such certification occurs, "low-emission and energy efficient vehicle" shall mean any vehicle that has achieved an air pollution score of nine or better and a greenhouse gas score of nine or better on the green vehicle guide maintained by the United States environmental protection agency. The department shall post on its web site a list of low-emission and energy efficient vehicles by make and model year and such other specifications as may be necessary to identify a low-emission and energy efficient vehicle, and shall update such list as necessary to provide a complete list of low-emission and energy efficient vehicles. The exemptions provided by this section shall be offset by the proceeds collected from the auction of any emissions allowances for air contaminants as provided for in regulations adopted by the department of environmental conservation pursuant to article nineteen of the environmental conservation law and proceeds collected but not allo-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04759-01-9
S. 3602 2
cated by the New York state energy research and development authority from the auction, pursuant to regulations of such authority, of emission allowances allocated by the department of environmental conservation to such authority pursuant to regulations adopted by such department. The offset shall not exceed twenty-seven million dollars.
§ 2. This act shall take effect on the first day of the sales tax quarter that begins at least ninety days after the day on which it shall have become a law and shall expire and be deemed repealed December 31, 2022.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to exempting low-emission and energy efficient vehicles from retail sales and compen- sating use taxes; and providing for the repeal of such provisions upon expiration thereof
Purpose or general idea of bill
This bill provides an incentive in the State of New York for individuals and commercial entities to purchase vehicles identified by the United States Environmental Protection Agency as clean and energy efficient.
Summary of specific provisions
This legislation amends the Tax Law to exempt receipts from the retail sale or use of low-emission and energy-efficient vehicles from sales and compensating use taxes imposed in or by the State of New York:
Justification
This bill would provide an incentive for residents of New York State to purchase cleaner, more efficient vehicles. This bill would encourage individuals and commercial entities to purchase hybrid vehicles by making them exempt from the 4% sales and compensating use taxes set forth by the state. About 33 of U.S. carbon dioxide emissions comes from the burning of gasoline in internal-combustion engines of cars and light trucks. For each gallon of gas a vehicle consumes, 19.6 pounds of carbon dioxide are emitted into the air. This exemption would be in place through the year 2017. This legislation would be a great step in achiev- ing better air quality in New York State as well as a reduction in the use of gasoline because hybrid vehicles get better mileage per gallon of gasoline.
Prior legislative history
2017/18 S2705A - Referred to Energy & Telecommunications, Finance 2015-16: S934A - Reported and Committed to Finance 2013-14: S1637A/A3846E - Committed and Reported to Finance 2011-12: S1054/A2539 - Referred to Energy & Telecommunications 2009-10: S1783A/A4022A - Referred to Finance 2008-09: S7547/A10447 Referred to Ways and Means
Fiscal implications for state and local governments
To be determined.
Effective date
This act shall take effect on the first day of the sales tax quarter that begins at least ninety days after the day on which it shall have become a law and shall expire and be deemed repealed December 31, 2021.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.